The International Finance Corporation plans to invest KSh1.4 billion ($12.5 million) in the form of a loan in AK Life, a top pharmaceutical manufacturer, and distributor based in Uganda. The medical company operates under the brand name ‘Abacus Pharma’ in Uganda, Rwanda, Tanzania, Kenya, and Burundi.
Abacus Pharma’s primary business is the distribution of generic medicine, imported from China and India, throughout the East African region. The company has a 4,000 m2 warehouse in Uganda and two smaller warehouses in Tanzania and Burundi. Abacus Pharma also manufactures IV fluids, eye, ear, and nose drops from its Ugandan factory.
The investment by IFC will go toward growing its distribution network in East Africa through leasing of new warehouses and increasing its manufacturing capacity by adding production lines for the generic drugs.
The East African region has been experiencing a rapid increase in investments in the healthcare industry with many private equity firms and institutional investors putting their funds in the sector.
AK Life, which owns Abacus Pharma, has been in operation for 25 years and is majority owned by Carlyle Group, an international private equity company.